A Discretionary Trust Provides

question 25

Multiple Choice

A discretionary trust provides:

• A) for the separation of legal and beneficial ownership of trust assets.
• B) beneficiaries with a right to minimum future income distributions.
• C) protection for trust assets from claims made on beneficiaries by third parties.
• D) both a and c

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Definitions:

Labor and Capital

The primary factors of production where labor refers to human effort and capital represents buildings, machinery, and equipment.

Fundamental Questions

The basic economic questions that every society must answer, which include what to produce, how to produce, and for whom to produce.

Prices Charged

The amount of money demanded by a business in exchange for its goods or services.

Goods and Services

Products and actions that fulfill human wants or needs, with goods being tangible items and services being intangible services.